Workiva — Third Quarter 2026 Earnings Summary

Financial Performance

• Total revenue was $263 million, an increase of 17% year-over-year from $224 million in the third quarter of 2025.
• Subscription and support revenue was $246 million, up 17% year-over-year.
• Professional services revenue was $17 million, up 15% year-over-year.
• GAAP operating margin was 6.8%, compared to (1.5)% in the third quarter of 2025.
• Non-GAAP operating margin was 18.3%, compared to 12.7% in the third quarter of 2025, representing a 560 basis point expansion.
• GAAP net income was $19 million, compared to $3 million in the third quarter of 2025; GAAP net income per diluted share was $0.35, up from $0.05.
• Non-GAAP net income was $41 million, compared to $27 million in the third quarter of 2025; non-GAAP net income per diluted share was $0.72, up from $0.46.
• Operating cash flow was $70 million, compared to $46 million in the third quarter of 2025.
• Free cash flow was $69 million, compared to $46 million in the third quarter of 2025.
• As of September 30, 2026, cash, cash equivalents, and marketable securities totaled $817 million, down from $892 million as of December 31, 2025.
• The remaining obligation for 1.125% convertible senior notes due in 2026 was fully settled on August 15, 2026, resulting in a $71 million cash outflow.
• Outstanding debt included $702 million in aggregate principal amount of 1.250% convertible senior notes due in 2028 and $13 million in finance lease obligations.
• Deferred revenue was $562.8 million as of September 30, 2026, up from $547.9 million as of December 31, 2025.

Guidance and Future Outlook

• Fourth Quarter 2026 total revenue is expected to be between $275 million and $278 million.
• Fourth Quarter 2026 GAAP operating margin is expected to be between 7.1% and 7.7%.
• Fourth Quarter 2026 Non-GAAP operating margin is expected to be between 19.0% and 19.5%.
• Fourth Quarter 2026 GAAP net income per diluted share is expected to be between $0.40 and $0.42.
• Fourth Quarter 2026 Non-GAAP net income per diluted share is expected to be between $0.78 and $0.80.
• Full Year 2026 total revenue is expected to be between $1.041 billion and $1.044 billion.
• Full Year 2026 GAAP operating margin is expected to be between 6.2% and 6.3%.
• Full Year 2026 Non-GAAP operating margin is expected to be between 18.2% and 18.3%.
• Full Year 2026 GAAP net income per diluted share is expected to be between $1.31 and $1.34.
• Full Year 2026 Non-GAAP net income per diluted share is expected to be between $2.80 and $2.83.
• Full Year 2026 free cash flow margin is expected to be approximately 21%.
• Non-GAAP net income per diluted share guidance includes a fixed non-GAAP provision for income taxes of 22%.

Business Segments and Product Lines

• Workiva serves as an audit-ready platform for trust, transparency, and accountability, utilized by accounting, finance, sustainability, risk, and audit teams.
• The company highlighted the integration of AI, noting that AI is shifting from helping people do work to doing the work itself, aligning with Workiva's strengths in accuracy and trust.
• The platform is expanding its role across the enterprise as software handles more complex, regulated, and high-stakes work.

Market and Competitive Landscape

• Workiva had 6,840 customers as of September 30, 2026, a net increase of 299 customers from September 30, 2025.
• Gross retention rate was 97% and net retention rate was 110% as of September 30, 2026.
• Customers with an annual contract value (ACV) over $100,000 increased 20% to 2,853 from 2,372 in the prior year.
• Customers with an ACV over $300,000 increased 31% to 708 from 541 in the prior year.
• Customers with an ACV over $500,000 increased 20% to 283 from 236 in the prior year.
• Over 85% of Fortune 1,000 companies rely on Workiva.

Risks and Challenges

• Forward-looking statements regarding financial position, operating performance, AI impact, business strategy, and market opportunities involve known and unknown risks and uncertainties.
• Actual results may differ materially from expectations due to factors including market conditions, technology changes, and regulatory environments.
• Non-GAAP financial measures exclude stock-based compensation and amortization of acquisition-related intangible assets, which are significant recurring expenses.
• Non-GAAP measures may not be directly comparable to those of other companies in the industry.

Management Commentary and Tone

• Julie Iskow, President & CEO, stated that results reflect continued momentum as organizations navigate growing complexity and emphasized Workiva's unique position to meet needs for accuracy and trust in an AI-driven landscape.
• Barbara Larson, CFO, noted that the company beat the high end of revenue guidance with 17% growth in both subscription and total revenue.
• Management highlighted that growth and profitability are going hand-in-hand, with expanding operating leverage generating healthy free cash flow to fund the technology roadmap toward 2030 targets.

Other Key Points

• Workiva purchased approximately 32.6 thousand shares for approximately $2 million during the third quarter of 2026 under its $350 million repurchase plan.
• Approximately $104 million remained available under the repurchase plan as of September 30, 2026.
• Beginning with the third quarter of 2026, non-GAAP net income includes a non-GAAP provision for income taxes using a fixed long-term projected rate of 22%, a change retrospectively applied to comparable prior periods.
• Workiva added back interest expense to the numerator of non-GAAP diluted earnings per share in accordance with the if-converted method for convertible senior notes, aligning with GAAP diluted EPS calculations.
• The 1.125% convertible senior notes due in 2026 were fully settled upon maturity on August 15, 2026.